Indian Merchandise Reaches Pakistan via Alternative Channels

According to the Global Trade Research Initiative (GTRI), Indian goods worth more than $10 billion annually are making their way to Pakistan through alternative trade channels, bypassing existing trade restrictions. This revelation sheds light on the ingenious methods businesses are employing to maintain trade between the two nations.

The Role of Intermediary Ports

GTRI's report highlights the use of intermediary ports in Dubai, Singapore, and Colombo as key transshipment points. These ports enable the transportation of goods from India to Pakistan, despite the trade limitations. "GTRI estimates that Indian goods worth over $10 billion annually reach Pakistan via this route," the report stated.

How the Process Works

The process involves Indian companies transporting goods to these intermediary ports, where independent entities unload and store the items in bonded warehouses. These warehouses, operating as duty-free storage facilities, play a crucial role. Labels and documents are often altered to show a different country of origin, allowing the goods to be shipped to Pakistan without detection.

The Grey Area of Transshipment

While this transshipment model is not always illegal, it operates in a grey area, with businesses finding ways to stay ahead of government regulations. The recent diplomatic tensions between India and Pakistan, including the suspension of the 1960 Indus Waters Treaty, are expected to further impact commercial exchanges.